| Dear members,
The Directors have pleasure in presenting the 20th Annual Report of
the company on the business and operations of the company together
with the Audited Accounts for the year ended 31st March 2014..
FINANCIAL RESULTS
The Standalone Financial Results of the Company for the financial year
ended March 31, 2014, is summarized below.
PARTICULARS Standalone Consolidated
2014 2013 2014 2013
Income 93625912 91980309 457557107 588415572
Total Expenditure 86048698 76612160 476212205 554474815
Finance Cost 218337 187636 3898467 4507966
Depreciation 2416864 2277693 11712683 8926022
Expenditure W/off 0 0 0 0
Operating
Profit/(Loss) 7577214 15368149 -18655098 33940757
Profit / (Loss)
before tax 4942013 12902820 -34266248 20506769
Less: Taxes 1124936 5060575 1124936 5060575
Profit/(Loss)
after tax 3817077 7842245 -35391184 15446194
EPS (equity shares,
per value Rs.10 each) 0.36 0.73 -3.29 1.44
BUSINESS PERFORMANCE
The performance of your company during the year under report has shown
stable over previous year. Your Company has been adopting a number of
"continuous improvement" initiatives during the year.
DIVIDEND:
Keeping the company's expansion and growth plans in mind, your
Directors have decided not to recommend dividend for the year.
TRANSFER TO RESERVES
No profits are intended to be transferred to reserves during the year.
OUTLOOK
AJEL is a premier provider of full range of information technology
services for the agile business. We combine strategic consulting,
process innovation, custom and package software deployment, and
application monitoring to rapidly deliver end-to-end business systems
that create immediate bottom-line impact for our clients to achieve
their business objectives.
Our Outsourcing Solution enables customers to gain efficiency in
operations, minimize Costs, and keep to a strategy of staying lean,
flexible and nimble. And best of all, we truly believe in
collaborative partnership to provide longterm value to our clients.
DIRECTORS
Mr. Vijay Kumar Ravindra Nath was appointed as Additional Director
w.e.f. 25th February, 2014 pursuant to Section 161 of the Companies
Act, 2013. His term of office shall be liable to retire by rotation.
In accordance with section 160 of the Companies Act, 2013, Mr. Vijay
Kumar Ravindra Nath, vacates office at the ensuing Annual General
Meeting and being eligible, offer himself for appointment.
In accordance with the provisions of Section l52 of the Companies Act,
2013, Mr. Jadda Amara Reddy and Ms. Vasantha Madasu retires by
rotation and being eligible, has offered himself for re-appointment
The brief resume of the directors who are to be appointed/re-appointed
the nature of their expertise in specific functional areas, names of
companies in which they held directorships, committee
memberships/chairmanships their shareholding etc., are furnished to
the explanatory statement to the notice of the ensuing Annual General
Meeting.
Your Directors recommend their appointment/re-appointment atthe
ensuing Annual General Meeting. SUBSIDIARY COMPANY
Your company has one wholly owned subsidiary namely Ajel Technologies
India Private Limited in Hyderabad, and the subsidiary has its wholly
owned subsidiary namely Ajel Technologies Inc, USA.
Pursuant to the provisions of Section 212 of the Companies Act, 1956
(Act), documents in respect of the various subsidiaries Viz.,
Director's Report, Auditor's Report, Balance Sheet and Profit and Loss
Account, are required to be attached to the Balance Sheet of the
holding company. However, in terms of the provisions of Section 212(8}
of the Act, the Government of India, Ministry of Corporate Affairs, has
vide Circular No. 2/2011 dated 8th February, 2011 granted exemption
from the provisions of Section 212(1) of the Act. Accordingly, the
Annual Report does not contain the financial statements of the
subsidiaries of the Company. However, the Company will make available
the audited annual accounts and related detailed information of the
subsidiaries to the shareholders upon request in accordance with the
applicable law. These documents are also available for inspection
atthe Registered Office of the Company during business hours.
AUDITORS AND THEIR REPORT
The Statutory Auditors of the Company M/s. Boppudi & Associates,
Chartered Accountants, hold office till the conclusion of the ensuing
Annual General Meeting and are eligible for re-appointment. The
Company has received letter to the effect that the re-appointment, if
made, would be within the prescribed limits under Section 141(3)(g)
of the Companies Act, 2013 and that they are not disqualified for
re-appointment.
Pursuant to Companies Act, 2013, your Company recommends the
appointment of Statutory Auditors to hold office from the conclusion
of the 20th Annual General Meeting till the conclusion of the 21st
Annual General Meeting, subject to ratification atthe every Annual
General Meeting of the Company.
The observation of the Auditors, together with the Notes to Accounts
referred to in the Auditors' Report, are self explanatory and do not
call for any further explanation from the Directors.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 134(5} of the Companies Act,
2013 (erstwhile section 217(2AA) of the Companies Act, 1956) with
respect to the Directors' Responsibility Statement, it is hereby
confirmed:
1. That in the preparation of the Accounts for the period ended March
31,2014, the applicable accounting standards have been followed along
with proper explanation relating to material departures, as explained
in earlier paragraph;
2. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent, so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for the year under review;
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
4. That the accounts have been prepared on a 'going concern' basis,
for the period ended March 31,2014;
5. That the Company, had laid down internal financial controls and
that such internal financial controls are adequate and were operating
effectively.
PARTICULARS OF EMPLOYEES:
In pursuance of the provisions of section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules
1975, the Directors are to report that there are no employees who are
in receipt of remuneration of Rs.60,00,000/- or more per annum or
Rs.5,00,000/- or more per month where employed for a part of the year.
PUBLIC DEPOSITS:
The Company has not accepted any fixed deposits as on 31st March, 2014
so as to attract the provisions of Section 58A and 58AA of the
Companies Act, 1956 read with Companies (Acceptance of the
Deposits)Rules, 1975 as amended from time to time.
NEW COMPANIES BILL 2013
The new Companies Bill is a landmark in the history of Corporate
India. The bill is a step towards globalization and is an attempt to
meet the changing environment and is progressive and futuristic duly
envisaging the technological and legal developments. Your Company will
transform its policies / provisions / etc., to be in conformity with
the new Companies Bill.
INFORMATION UNDER SECTION 217 (11 (el OF THE COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS! RULES. 1988:
Conservation of Energy
Company's operations require electrical energy for its use in air
conditioning the premises, for power supply to computer systems and
lighting which are not energy intensive. However, adequate measures
have been taken to reduce energy consumption, wherever possible.
Technology absorption
Your company continues to use state-of-the-art technology for
improving the productivity and quality of its products and services.
To create adequate infrastructure, your Company continues to invest in
the latest hardware and software.
To support its growth plans, the company continues to invest in global
solutions that are configured consistently for its core business
processes.
Research & Development
Your company will continue to focus and invest in its R & D activities
in software engineering, technologies and products. Your company
leverages its excellence in technology for producing World Class
Products and solutions. The continual exposure to new technologies has
helped maintain high motivation levels in employees and to generate
higher levels of productivity, efficiency and quality. Your company
continues to give due importance to research and development to
maintain its leadership in the field of leading edge technologies.
Foreign Exchange Earnings & Outgo
Particulars FY2013-14 FY2013-14
Foreign Exchange Earnings: - Rs.11,900,000
Foreign Exchange Outgo : -
MANAGEMENT DISCUSSION AND ANALYSIS:
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchange in India, is presented in a separate section forming part
of the Annual Report
HUMAN RESOURCES
Your Company believes that Competent Human Resources are the driving
force for any Organization that enables a company to grow in leaps and
bounds. The Company has been able to create a favorable work
environment that encourages continuous learning and thereby leading to
innovation. With vibrant work atmosphere, your Company provides an
opportunity to employees to work with New Technologies. Your Company
has put in place a Scalable Recruitment and Human Resources Plan,
devised to attract and retain high caliber personnel.
Ajel has been fortunate in having a set of committed employees at all
levels and looks forward to nurture them and retain their loyalty. The
Company recognized the value of the committed workers and efforts are
being made to enhance the bonding between the Company and the
committed employees.
CORPORATE GOVERNANCE:
The Company is committed to maintain the highest standards of
corporate governance and adhere to the corporate governance
requirements set out by SEBI. The Report on corporate governance as
stipulated under Clause 49 of the Listing Agreement forms part of the
Annual Report.
The requisite certificate from the Practicing Company Secretary
confirming compliance with the conditions of corporate governance as
stipulated under the aforesaid Clause 49 is attached to the report on
corporate governance.
STATEMENT PURSUANT TO LISTING AGREEMENT
The equity shares of the company are listed with the Bombay stock
exchange (BSE) and Ahmedabad Stock Exchange (ASE). Your company has
paid the respective Annual Listing Fees up-to-date.
ACKNOWLEDGMENTS:
Your Company is grateful to the customers and business partners for
their support and encouragement especially in the time of slow
economic growth. Your Board is appreciative of the passion, dedication
and commitment demonstrated on the job by all the employees. Your
Directors wish to place on record their gratitude to the Customers,
Government, Financial Institutions, Banks and Shareholders for their
continuing support, guidance, and assistance over the years.
For and on behalf of Board of Directors
Place: Mumbai Sd/-
Date: 29.05.2014 Srinivasa Reddy Arikatla
Chairman & Managing Director |